As long as you can find Free Movies for Ipod, why would you need an iPhone? Some people just have tohve the very best of everything, but there really is no need for an iphone as long as you have a fully functional video ipod. The video ipod is a great gadget, and now with the latest version you can do virtually everything the iphone can do. The iPhone is a great device, and the 2.0 software makes it even greater, but there is no reason to throw good money after bad and buy something that will be cheaper in a few years.